Virgin Australia China alliance gets green light

Australia’s competition watchdog last week gave the green light to Virgin Australia’s planned strategic alliance with China’s HNA Aviation along with Hong Kong Airlines and HK Express.

The Australian Competition and Consumer Commission (ACCC) approved the alliance for a five-year period.

Since initially applying for authorisation, Virgin has begun the first phase of the strategic tie up with the start of a codeshare agreement and the launch of Melbourne-Hong Kong flights.

Virgin can now begin to deepen ties with the airlines by coordinating some operations including codesharing, loyalty programme cooperation marketing and flight scheduling.

The alliance is valid on the respective airlines’ Australia-Greater China routes.

"HNA Aviation, Hong Kong Airlines and HK Express are very well regarded in the aviation industry and we are excited to work closely with them to give travellers between Australia, Hong Kong and mainland China more choice and better value," said Virgin Australia chief executive John Borghetti.

"Travellers are already embracing the benefits offered by the alliance, including the direct Melbourne-Hong Kong services that Virgin Australia launched last month.

"We look forward to working with our partners to strengthen the important tourism and trade connections between Australia, Hong Kong and mainland China, and bring more travellers to Australia.," he added.